Assetz Capital cuts development finance rates

Assetz Capital, one of the UK’s leading non-bank SME development finance lenders, has announced a further reduction in its headline ground-up development finance rate, now starting from just 8.60%.

This marks the third reduction in six months, following earlier cuts from 9.10% in February to 8.85% in April, and now to a new market-leading low this July.

This progressive rate trajectory underlines Assetz Capital’s continued commitment to enabling SME housebuilders across the UK to deliver more homes, more profitably at a time when affordability, margin protection and delivery speed are more important than ever.

“We’ve acted quickly again to support our borrowers,” said Andrew Fraser, Chief Commercial Officer at Assetz Capital.

“This latest reduction to 8.60% reflects our belief that fair, accessible finance is vital for SME developers to maintain momentum. Combined with enhanced Day 1 loan advances and our fast-track credit process, we’re enabling clients to reduce stress, improve margins, and move projects forward without delay.”

In addition to the rate cut, developers can benefit from flexible Day One loan advances with a further enhancement for experienced developers to model in early-stage plot sales, with Gross Funding structures equally available of up to 72.5% LGDV, alongside an option to move to 87.5% Gross Loan to Cost.

Loans are available from £1m to £10m, structured with commercial pragmatism and backed by dedicated regional Relationship Directors, ensuring continuity and support from enquiry to redemption.

Assetz Capital’s ability to deliver credit decisions within 24 hours for straightforward cases further strengthens its fast, responsive approach.

This combination of speed and security empowers SME developers to move quickly on land acquisitions, new phases, or refinancing without the bottlenecks often encountered with high street or inflexible alternative lenders.

“While the wider economic environment remains unpredictable,” Fraser continued, “our institutional funding structure means we can pass on savings in real time.

This gives developers confidence to move decisively, knowing they’re working with a partner who acts transparently and consistently in their interests.”

With over £1.7bn deployed to date and a role in funding 1 in every 12 SME-built homes in the UK, Assetz Capital is fast becoming the lender of choice for entrepreneurial developers seeking both capability and understanding.

The new development rate complements a wider suite of solutions including bridging, refurbishment, and exit funding, with all products delivered via a relationship-led model that emphasises transparency, partnership, and commercial realism.

“We don’t believe in rigid templates,” added Fraser. “We meet borrowers where they are listening first, advising constructively, and backing their vision when others won’t. That’s the difference between transactional finance and a true lending partner.”

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